Fintech for SMEs
Small and Medium Enterprises are, as is well known, one of the fundamental assets of the Italian business fabric, whose development, generally anchored in tradition and territoriality, is today challenged by the changes that have occurred in the economy as a result of globalization.
The factors that have most compromised the old systems and consequently the development and resilience of SMEs range from the competitiveness and attractiveness of big companies, to the tax pressure, to access to credit.
In this regard, in fact, it is possible to find that SMEs do not have easy access to financing and economic support, but fintech can help. Let’s see how.
The role of Fintech in the growth of SMEs
In today’s complex market, fintech can be the ideal solution for SMEs, which often find it difficult to access traditional financing channels. Fintech, in fact, through simplified access to credit and digital technology, facilitates business development.
Fintech combines finance with technology and its products are entirely digital. This results in simplified access to credit, which is referred to as “Fintech lending.”
Fintech’s digital processes, in fact, allow for quick and easy document sharing, and facilitate feasibility screening, thus enabling the disbursement of credit significantly faster than through traditional channels.
An additional benefit derived from the digitization of Fintech products and processes is the decrease in the operational and personnel costs that the company has to sustain, as it allows for the elimination of the long timelines of paper-based bureaucracy.
Fintech lending numbers to support SMEs
Fintech lending is an ever-expanding model in the market, especially for SMEs. The success of this phenomenon can be seen above all in the model used, which by taking full advantage of the power of digitalization, enables SMEs to access credit more easily and quickly than through traditional channels. According to recent analysis*, more than 4.5 billion euros were disbursed to Italian SMEs through innovative Fintech platforms in 2022. These numbers demonstrate how fintech plays a critically important role in the growth of SMEs.
In addition, financing that is provided through the digital lending model is often accompanied by a merit rating, specific obligations for the security of data use, and consideration of values related to ESG principles, or Environmental, Social and Governance, which evaluate the company from a perspective other than economic, based on the impact it has on the environment and society. This renewed analysis on the company, careful not only at the level of business, but also environmental sustainability and growth prospects, allows for greater confidence among investors, who may choose to favor additional resources.
Fintech and AI
Finally, we need to consider the implementation of financial services with the integration of Artificial Intelligence, which in Fintech makes it possible to offer customized solutions based on the specific needs of SMEs. Therefore, each enterprise can find the financing solution best suited to its needs.
Are you an SME? Request a consultation now to understand how to grow your business, our specialized consultants will support you.
If your difficulty, as an SME, is not accessing funding, but is about employee motivation, productivity and retention, then what you need is a corporate welfare plan. Our company MySarma, a provider in the welfare market, together with Labor Consultant & Welfare Specialist, Luca Furfaro, has created a practical guide for SMEs. Download it and grow your business!
*Source: IlSole24Ore.com “Digital lending runs: 4.5 billion euros to SMEs in 2022”
